As a business owner, providing goods and services to customers can expose you to the risk of non-payment. While you might manage smaller bad debts, substantial unexpected losses can be devastating for your business.
Trade Credit Insurance safeguards your business's cash flow by covering losses resulting from customers’ insolvency or failure to pay.
Do I need Trade Credit Insurance?
If you own any type of business or are a subcontractor and rely on customers meeting their payments on time, then you should consider getting Trade Credit Insurance.
Trade Credit Insurance is also an effective risk management tool that can:
- Protect and improve your “cash-flow”
- Enhance your balance sheet, optimise working capital and reduce the cost of finance
- Increase your sales and profitability
- Improve and strengthen your credit control and management procedures
How do I arrange my Trade Credit Insurance cover?
We want to protect your business and make your life easier. We can act on your behalf and get terms and pricing from a variety of underwriters to meet your specific business needs.
To arrange your Trade Credit Insurance with Clearlake Insurance, we will require the following:
- A list of your top 10 customers (including their ACN/ABN numbers and the maximum exposure you believe you’ll have over the next 12 months)
- Your aged debtors trial balance – showing amounts outstanding as of (the current day at the time of reporting, 30 days, 60 days, 90 days and 91 days plus)
- A list of your clients that became insolvent in the last 3 years (including the name and amount of the loss)
General Advice Warning
The information provided on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice on this website is General Advice and does not take into account any person’s individual investment objectives, financial situation or needs. Before making a decision based on this advice you should consider whether it is appropriate to your particular circumstances.
Where the General Advice relates to the acquisition or possible acquisition of a financial product, you should obtain a disclosure document, including the Product Disclosure Statement (PDS) and, where available, Target Market Determination (TMD) relating to the product and consider the content before making any decision about whether to acquire the product.
Authorised by Clearlake Insurance Brokers ABN 16 651 113 861 AFSL 559829
How Clearlake Insurance can help
Clearlake Insurance Brokers is one of the few firms in Australia with a specialised, in-house Trade Credit team. We offer customised insurance solutions at competitive rates for businesses both within Australia and internationally.
For more information or to arrange cover, please contact us on 02 9037 8970 or simply fill out the form below and one of our insurance brokers will get in touch shortly.
